Welcome to some of the biggest sales days of the year. I'm not referring to holiday shopping, but the rush as investors work to complete mergers and acquisitions before the end of the fiscal (and calendar) year.
As PN's Frank Esposito wrote at the halfway point of 2021, this year has been a very strong one for sellers anxious to sell while prices are high and private equity groups have a lot of cash set aside.
"People are saying, 'The market looks good, so let's go,'" John Hart, managing director with P&M Corporate Finance in Southfield, Mich., told Frank back in July.
Just in the first half of the year, M&As in the food and beverage packaging end market were up 185 percent vs. the first half of 2020. Flexible packaging sales were up 275 percent and the automotive and transportation sector was up 225 percent. Granted, that's compared with 2020 when the start of the COVID-19 pandemic disrupted a lot of planned acquisitions, but the numbers seen then already were ahead of other recent years.
And judging by news releases received by Plastics News recently, there are a lot more deals on the way for the final weeks of 2021. Just this week there have been sales announced for machinery makers, materials suppliers, building product makers and specialty film companies. One molder, Myco Plastics, opted to buy a nearby toolmaker rather than invest in building up its own toolroom.
So with only a few weeks left to go in 2021, don't be surprised to see more M&A news show up over the next few weeks.